Since I started talking about banks to invest in, I thought I would look at all banks that are currently being suggested as a good buy. This bank, (TSX-BNS) is a bank that has raised their dividends twice this year. There is also some insider selling on this stock, but it is felt it is below historical averages.
When I last looked at this stock in June 2008, the EPS estimate for the year was $4.26. However, this estimate has been lowered to $3.98. The other negative is that the Return on Equity (ROE) is likely to much lower than the 5 year average. In the analyst ratings on this stock, they seem to be evenly divided into Strong Buys, Buys and Holds.
Not that much has happened to this stock since June. The positives are that the P/E ratio has moved below the 5 year average, the Yield has moved higher than the 5 year average, the Graham Price and the current Price has moved closer (but the Graham Price is still above the current price) and the Accrual Ratio has moved slightly lower (but is still not negative).
This bank is still a well run bank and, on another positive note, the Bank of Nova Scotia is acquiring Sun Life’s stake in CI Financial. Altogether, there seems to be a lot of positives for this stock currently.
This is a bank. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. It operates in Canada, USA, Caribbean, and other places around the globe. Its web site is www.scotiabank.com. See my spreadsheet at www.spbrunner.com/stocks/bns.htm. I am reloading my spreadsheet with the July 2008 figures.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Friday, October 31, 2008
Thursday, October 30, 2008
Royal Bank 3
This stock (TSX-RY) is one the stocks that has recently been recommended in this difficult time. The one negative that I have with this stock is that it has not raised its dividend this year. This stock, for many years, has raised their dividend twice a year. I will get move dividends this year as they raised their dividend in May and November 2007. Last year my average dividend was $1.82 and this year it will be $2.00.
Some people view the lack of dividend increases as a positive. The Royal Bank is using it’s free cash at this point to make purchases in a crisis. So, it is felt that this might be a better use of Royal Bank’s money than increasing dividends. They do have a point. The Royal Bank has also issued shares as a means of purchasing other financial entities.
The next negative I have on this stock is that there has been lots of insider selling. The selling has also been done by a number of officers of the company. The Royal Bank has been buying back shares recently. This is a sign that the company has some faith in this stock. However, I would feel better if the officers of the company had faith in it also and that they were not selling shares. There is about has many Strong Buys on this stock as there are Holds. This points to a wide variety of views on this stock.
Not much has changed on this stock since I last reported on it. The price is still lower than the Graham Price. The estimated EPS is still $4.27 for this year. The Accrual Ratio has come down, but it is still not negative. The P/E ratio at 11% is still below the 5 year average of 14.6%. The yield is still higher, at 4.26%, than the 5 year average of 3.18%. These are all positives.
This is a bank. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. It operates in Canada, USA, Caribbean, and other places around the globe. Its web site is www.rbc.com. See my spreadsheet at www.spbrunner.com/stocks/ry.htm. I am reloading my spreadsheet with the July 2008 figures.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Some people view the lack of dividend increases as a positive. The Royal Bank is using it’s free cash at this point to make purchases in a crisis. So, it is felt that this might be a better use of Royal Bank’s money than increasing dividends. They do have a point. The Royal Bank has also issued shares as a means of purchasing other financial entities.
The next negative I have on this stock is that there has been lots of insider selling. The selling has also been done by a number of officers of the company. The Royal Bank has been buying back shares recently. This is a sign that the company has some faith in this stock. However, I would feel better if the officers of the company had faith in it also and that they were not selling shares. There is about has many Strong Buys on this stock as there are Holds. This points to a wide variety of views on this stock.
Not much has changed on this stock since I last reported on it. The price is still lower than the Graham Price. The estimated EPS is still $4.27 for this year. The Accrual Ratio has come down, but it is still not negative. The P/E ratio at 11% is still below the 5 year average of 14.6%. The yield is still higher, at 4.26%, than the 5 year average of 3.18%. These are all positives.
This is a bank. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. It operates in Canada, USA, Caribbean, and other places around the globe. Its web site is www.rbc.com. See my spreadsheet at www.spbrunner.com/stocks/ry.htm. I am reloading my spreadsheet with the July 2008 figures.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
I have finished painting my Computer Room
I now have a nice, freshly painted room to work from. I not only did the walls, but I also painted the floor with Polyurethane. So everything looks just great.
Tuesday, October 28, 2008
I Am Painting My Computer Room
I have to paint my computer room, so I will not be able to blog today, and probably for the rest of the week. I will be back next week.
Monday, October 27, 2008
Linamar Corporation 2
As I said yesterday, this stock, (TSX-LNR), is not on any on the Dividend Achievers list, nor is it on Mike Higgs’. It is a stock that I notice has been recommended lately as good value.
Today I looked at the June 2008 quarterly report on this stock and also, what analysts are saying about this stock. For the analysts I checked, some have a Hold rating on this stock and some have a Buy rating on this stock. They seem to be evenly split. There is lots of insider buying on the stock and this is a very good sign. Today’s price of $8.04 is quite a bit below the Graham Price of $20.44 and this, of course, is good.
However, no one expects that the Earnings per Share (EPS) will be as good in 2008 or 2009 as it has been for the last several years. The Accrual Ratio has come down to 5.9% from 10%, but anything over 5% is very high. It is hard to say if this is a good buy or not. I think that there are probably better buys with less risk. This stock would be considered a medium risk.
Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is www.linamar.com. See my spreadsheet at www.spbrunner.com/stocks/lnr.htm. I am reloading my spreadsheet with the June 2008 figures.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Today I looked at the June 2008 quarterly report on this stock and also, what analysts are saying about this stock. For the analysts I checked, some have a Hold rating on this stock and some have a Buy rating on this stock. They seem to be evenly split. There is lots of insider buying on the stock and this is a very good sign. Today’s price of $8.04 is quite a bit below the Graham Price of $20.44 and this, of course, is good.
However, no one expects that the Earnings per Share (EPS) will be as good in 2008 or 2009 as it has been for the last several years. The Accrual Ratio has come down to 5.9% from 10%, but anything over 5% is very high. It is hard to say if this is a good buy or not. I think that there are probably better buys with less risk. This stock would be considered a medium risk.
Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is www.linamar.com. See my spreadsheet at www.spbrunner.com/stocks/lnr.htm. I am reloading my spreadsheet with the June 2008 figures.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Friday, October 24, 2008
Linamar Corporation
This stock, (TSX-LNR), is not on any on the Dividend Achievers list, nor is it on Mike Higgs’. It is a stock that I notice has been recommended lately as good value. So, I decided to look at again. I looked at this stock back in 2000 and it was not a stock I thought fit my investment philosophy. It is not a stock I would want to buy and hold. This stock reached a peak in 1997 and has not yet recovered.
If you had held this stock for the 5 years to December 2007, you would have made money. However, if you had held it for the 10 years to December 2007, you would have lost money. Part of the reason the price was high in 1997 was that the P/E ratio was much higher than it is today. In 1997, P/E was 21 and in December 2007, it was 13.
The positives on this stock are that they have made good progress in increasing sales and Earnings per Share (EPS). It has also increased the dividend by an average of 8% over the last 5 years. This is better than inflation. The Return on Equity at 11.6% average over the last 5 years is not bad.
The negatives, as I see them, are the Cash Flow has only increased over the last 5 years by 6%. This is lower than the dividend increase rate. The Book Value has only increased by 6.7% and this is also low. Given our economic situation, I doubt if this company will be making good money for a while. However, this stock is priced at $8.54 today. It has lost some 57% of its value since December 2007 and it might be of good value. I will take a look at more recent financial reports tomorrow and see the analysts are saying about this stock.
Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is www.linamar.com. See my spreadsheet at www.spbrunner.com/stocks/lnr.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
If you had held this stock for the 5 years to December 2007, you would have made money. However, if you had held it for the 10 years to December 2007, you would have lost money. Part of the reason the price was high in 1997 was that the P/E ratio was much higher than it is today. In 1997, P/E was 21 and in December 2007, it was 13.
The positives on this stock are that they have made good progress in increasing sales and Earnings per Share (EPS). It has also increased the dividend by an average of 8% over the last 5 years. This is better than inflation. The Return on Equity at 11.6% average over the last 5 years is not bad.
The negatives, as I see them, are the Cash Flow has only increased over the last 5 years by 6%. This is lower than the dividend increase rate. The Book Value has only increased by 6.7% and this is also low. Given our economic situation, I doubt if this company will be making good money for a while. However, this stock is priced at $8.54 today. It has lost some 57% of its value since December 2007 and it might be of good value. I will take a look at more recent financial reports tomorrow and see the analysts are saying about this stock.
Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is www.linamar.com. See my spreadsheet at www.spbrunner.com/stocks/lnr.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Thursday, October 23, 2008
Buying In Today’s Market
I you buy stocks in today’s market, be prepared for volatility still. The way to invest is to make sure you have a 3 to 5 year time window on your investments. 3 years is the absolute minimum time you will need to insure you will have a good investment return. 5 year is much better.
One rule, always – never invest money you will need within the next 3 years. In any market, you will need to be able to pick an exit point. 3 years gets you enough time for that. Today’s market is relatively low. If the market goes higher than the highs of June 2008, then the market will be relatively high. The only thing you can tell about the market is where it is relatively to where it has been. You will never know anything else. If you need money from investments with 3 years, and the market is relatively high, that is probably the best time to take money out. Could it get higher? Of course, it could. But it can also go lower.
What you also need to know is the difference between investing and speculations. I am mostly an investor. I have high quality dividend paying stocks. I do some speculating. For example, when buying RIM, I was both speculating and investing. It is a mixture because, when it rose, I took out money to cover twice what I had initially paid for this stock. If the stock price rises too far again, I will probably sell some more stock. At the moment, I am holding on to it because I think the company has great potential.
You can be an investor or a speculator on any stock. A recent example is I have friends who bought BCE after the buyout was announced. Even though this is a conservative company and is the type of stock one invests in, this purchase of BCE was a speculation. It is about the only purchase of stock by these friends. BCE was trading below the buyout price when they bought. A lot of things can go wrong on buyouts. I will not believe in the buyout of BCE until the money is actually paid. A lot of things can still go wrong.
So, sometimes a purchase of even a conservative stock can be speculation. You are an investor if you carefully investigate a company and buy stock for the long term. You may not hold it for the long term, as one never knows what will happen in the future. But purchasing a good company, planning on staying with it for the long term is an investment and it makes you an investor.
This can be a very good time to be an investor. Yes, there will be volatility, but you can get some very good companies at some very good prices.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
One rule, always – never invest money you will need within the next 3 years. In any market, you will need to be able to pick an exit point. 3 years gets you enough time for that. Today’s market is relatively low. If the market goes higher than the highs of June 2008, then the market will be relatively high. The only thing you can tell about the market is where it is relatively to where it has been. You will never know anything else. If you need money from investments with 3 years, and the market is relatively high, that is probably the best time to take money out. Could it get higher? Of course, it could. But it can also go lower.
What you also need to know is the difference between investing and speculations. I am mostly an investor. I have high quality dividend paying stocks. I do some speculating. For example, when buying RIM, I was both speculating and investing. It is a mixture because, when it rose, I took out money to cover twice what I had initially paid for this stock. If the stock price rises too far again, I will probably sell some more stock. At the moment, I am holding on to it because I think the company has great potential.
You can be an investor or a speculator on any stock. A recent example is I have friends who bought BCE after the buyout was announced. Even though this is a conservative company and is the type of stock one invests in, this purchase of BCE was a speculation. It is about the only purchase of stock by these friends. BCE was trading below the buyout price when they bought. A lot of things can go wrong on buyouts. I will not believe in the buyout of BCE until the money is actually paid. A lot of things can still go wrong.
So, sometimes a purchase of even a conservative stock can be speculation. You are an investor if you carefully investigate a company and buy stock for the long term. You may not hold it for the long term, as one never knows what will happen in the future. But purchasing a good company, planning on staying with it for the long term is an investment and it makes you an investor.
This can be a very good time to be an investor. Yes, there will be volatility, but you can get some very good companies at some very good prices.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Wednesday, October 22, 2008
Power Corp 2
As I said yesterday, stock (TSX-POW) is on the Dividend Achievers at www.dividendachievers.com/, the Dividend Aristocrats lists and also on Mike Higgs’ list at www.dividendgrowth.org/Report.htm. I do not own this stock, as I have brought Power Financial. Power Financial is a subsidiary of Power Corp. I tend to like financial stocks, but Power Corp has its fans.
The real negative I see on this stock is that there is lots of insider selling, not only of Power Corp, but also of Power Financial. Insider selling is not the same strong signal as insider buying is. The heavy selling is by directors. People can sell for a variety of reasons that has nothing to do with a stock. The controlling shareholder of Power Corp of Canada is Paul Demarais. They have 30.1%, but have 64.6% voting control. There seems to be no selling by this family.
The other negative on this stock seems to be that everyone expects the EPS to be lower in 2008 from 2007. It is only by about 3% lower. It is expected the EPS will increase for 2009 by about 12%. This is therefore, not a long term negative. Power Corp has already raised their dividends this year by 26% and this is higher than the 5 year average. The P/E ratio at 9 is lower than the 5 year average of 12 and this is good. The accrual ratio is lower and it has turned negative. This is also good.
The average rating on this stock is a buy. The ratings range from strong buy to hold with the average being a buy. This stock would seem to be a great long term buy. But, please do your own research before making any decisions. Make sure you can deal with the volatility that will come with the current market conditions.
This company is an international management and holding company. It has as subsidiaries Power Financial Corp., Power Technology Investment Corp. and Gesca Ltee. Subsidiaries of Power Financial include Great-West Lifeco, IGM Financial, London Insurance Group, Canada Life Financial, Putnam Invest., LLC Investors Group, Mackenzie Financial Corporation, and its affiliate Pargesa Holding SA. The Pargesa Group holds significant positions in five large companies based in Europe of Total (energy), Suez (energy, water, waste services), Imerys (specialty minerals), Lafarge (cement and building materials and Pernod Ricard (Wines and Spirits). Gesca holds a 100% interest in the Montréal daily newspaper La Presse and six other daily newspapers in the provinces of Québec and Ontario. Gesca also produces television programming, publishes specialty magazines and books, and operates several Internet sites.
Its web site is www.powercorporation.com. See my spreadsheet at www.spbrunner.com/stocks/pow.htm. I have reloaded my spreadsheet for the June 2008 quarterly report.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
The real negative I see on this stock is that there is lots of insider selling, not only of Power Corp, but also of Power Financial. Insider selling is not the same strong signal as insider buying is. The heavy selling is by directors. People can sell for a variety of reasons that has nothing to do with a stock. The controlling shareholder of Power Corp of Canada is Paul Demarais. They have 30.1%, but have 64.6% voting control. There seems to be no selling by this family.
The other negative on this stock seems to be that everyone expects the EPS to be lower in 2008 from 2007. It is only by about 3% lower. It is expected the EPS will increase for 2009 by about 12%. This is therefore, not a long term negative. Power Corp has already raised their dividends this year by 26% and this is higher than the 5 year average. The P/E ratio at 9 is lower than the 5 year average of 12 and this is good. The accrual ratio is lower and it has turned negative. This is also good.
The average rating on this stock is a buy. The ratings range from strong buy to hold with the average being a buy. This stock would seem to be a great long term buy. But, please do your own research before making any decisions. Make sure you can deal with the volatility that will come with the current market conditions.
This company is an international management and holding company. It has as subsidiaries Power Financial Corp., Power Technology Investment Corp. and Gesca Ltee. Subsidiaries of Power Financial include Great-West Lifeco, IGM Financial, London Insurance Group, Canada Life Financial, Putnam Invest., LLC Investors Group, Mackenzie Financial Corporation, and its affiliate Pargesa Holding SA. The Pargesa Group holds significant positions in five large companies based in Europe of Total (energy), Suez (energy, water, waste services), Imerys (specialty minerals), Lafarge (cement and building materials and Pernod Ricard (Wines and Spirits). Gesca holds a 100% interest in the Montréal daily newspaper La Presse and six other daily newspapers in the provinces of Québec and Ontario. Gesca also produces television programming, publishes specialty magazines and books, and operates several Internet sites.
Its web site is www.powercorporation.com. See my spreadsheet at www.spbrunner.com/stocks/pow.htm. I have reloaded my spreadsheet for the June 2008 quarterly report.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Tuesday, October 21, 2008
Power Corp
This stock (TSX-POW) is on the Dividend Achievers at www.dividendachievers.com/, the Dividend Aristocrats lists and also on Mike Higgs’ list at www.dividendgrowth.org/Report.htm. It is a stock that I notice has been recommended lately as good value. It is hard to know what to buy in such volatile markets, so I am featuring ones who have recently been recommended in this tough market.
I do not own this stock, as I have brought Power Financial. Power Financial is a subsidiary of Power Corp. I tend to like financial stocks, but Power Corp has its fans.
Over the 5 year period to December 2007, which is the last annual report, this stock has done well. Over this period, the revenues have increase by 9%, the Earnings per Share (EPS) by 17.5%, the dividends by 18% and the closing price by 20%. The Graham Price at 31 December 2007 was $39.27 while the closing price was $40.13, which is quite close.
For this stock, the Return on Equity (ROE) is at 14.6% for the year ending December 2007. The Accrual Ratio is 2%, which is not bad. The only real negatives I have are that Power Corp. tends to have a heavy debt compared to assets and the Asset/Book Value ratio is high at 13. Although financial stocks do tend to have a much higher Asset/Book Value than other stocks.
This stock has done was well as the TSX, but not quite as well as the TSX Financial Index over the past year. Over the past 3, 5 and 10 years, this stock has done as well as the TSX and TSX Financial Index. Do not forget that this stock pays dividends, and charts do not take dividends into account.
Tomorrow, I will update my spreadsheet with the latest quarterly report and look at what a variety of analyst think of this stock.
This company is an international management and holding company. It has as subsidiaries Power Financial Corp., Power Technology Investment Corp. and Gesca Ltee. Subsidiaries of Power Financial include Great-West Lifeco, IGM Financial, London Insurance Group, Canada Life Financial, Putnam Invest., LLC Investors Group, Mackenzie Financial Corporation, and its affiliate Pargesa Holding SA. The Pargesa Group holds significant positions in five large companies based in Europe of Total (energy), Suez (energy, water, waste services), Imerys (specialty minerals), Lafarge (cement and building materials and Pernod Ricard (Wines and Spirits). Gesca holds a 100% interest in the Montréal daily newspaper La Presse and six other daily newspapers in the provinces of Québec and Ontario. Gesca also produces television programming, publishes specialty magazines and books, and operates several Internet sites. Its web site is www.powercorporation.com. See my spreadsheet at www.spbrunner.com/stocks/pow.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
I do not own this stock, as I have brought Power Financial. Power Financial is a subsidiary of Power Corp. I tend to like financial stocks, but Power Corp has its fans.
Over the 5 year period to December 2007, which is the last annual report, this stock has done well. Over this period, the revenues have increase by 9%, the Earnings per Share (EPS) by 17.5%, the dividends by 18% and the closing price by 20%. The Graham Price at 31 December 2007 was $39.27 while the closing price was $40.13, which is quite close.
For this stock, the Return on Equity (ROE) is at 14.6% for the year ending December 2007. The Accrual Ratio is 2%, which is not bad. The only real negatives I have are that Power Corp. tends to have a heavy debt compared to assets and the Asset/Book Value ratio is high at 13. Although financial stocks do tend to have a much higher Asset/Book Value than other stocks.
This stock has done was well as the TSX, but not quite as well as the TSX Financial Index over the past year. Over the past 3, 5 and 10 years, this stock has done as well as the TSX and TSX Financial Index. Do not forget that this stock pays dividends, and charts do not take dividends into account.
Tomorrow, I will update my spreadsheet with the latest quarterly report and look at what a variety of analyst think of this stock.
This company is an international management and holding company. It has as subsidiaries Power Financial Corp., Power Technology Investment Corp. and Gesca Ltee. Subsidiaries of Power Financial include Great-West Lifeco, IGM Financial, London Insurance Group, Canada Life Financial, Putnam Invest., LLC Investors Group, Mackenzie Financial Corporation, and its affiliate Pargesa Holding SA. The Pargesa Group holds significant positions in five large companies based in Europe of Total (energy), Suez (energy, water, waste services), Imerys (specialty minerals), Lafarge (cement and building materials and Pernod Ricard (Wines and Spirits). Gesca holds a 100% interest in the Montréal daily newspaper La Presse and six other daily newspapers in the provinces of Québec and Ontario. Gesca also produces television programming, publishes specialty magazines and books, and operates several Internet sites. Its web site is www.powercorporation.com. See my spreadsheet at www.spbrunner.com/stocks/pow.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Monday, October 20, 2008
Our Current Bear Market and Other Bear Markets
Is our current bear market like other markets? There are many commentaries on this subject. You will hear people refer to other bear markets or similar problems occurring in the past somewhere. You probably also hear this bear market being referred to as a “Black Swan”. No, this bear market is not the same as some other bear market, but that does not mean there are no commonalities.
Mark Twain once said, “History doesn't repeat itself, but it does rhyme”. He is exactly right. The same thing came be said of bear markets, you will never get two exactly the same, but that does not mean they cannot "rhyme". Do not try to deal with the current bear market as if it was like another one. This will not work. It is like Generals in a war, who are only prepared to fight the last war, not the current one.
So, educate yourself about bear markets to figure our how to handle this one, but remember, it is not exactly like any pass bear market. I have been through a number of these things since I started investing in the 70’s. I have also read about bear markets. Also, what is a bear market depends on point of view. You could have the point of view that the US and Canadian market are one long bull market, as they continuously go up. You can see it them as a series of bear and bull markets. When you read about bear and bull markets you will see that depending on who is talking, different timings are given.
What really kills stocks markets is if a country is invaded or if a country goes bankrupt. If you think that a Western country cannot go bankrupt, you did not hear about the problems New Zealand had in the 1970’s. However, I do not think that any Western country, especially Canada, is going to have such problems anytime soon.
When people are referring to this bear market as a “Black Swan”, they are referring to a theory or a concept that a phenomenon could occur even if no one has ever observed it before. See Wikipedia entry at http://en.wikipedia.org/wiki/Black_swan_theory for more information on this concept or theory.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Mark Twain once said, “History doesn't repeat itself, but it does rhyme”. He is exactly right. The same thing came be said of bear markets, you will never get two exactly the same, but that does not mean they cannot "rhyme". Do not try to deal with the current bear market as if it was like another one. This will not work. It is like Generals in a war, who are only prepared to fight the last war, not the current one.
So, educate yourself about bear markets to figure our how to handle this one, but remember, it is not exactly like any pass bear market. I have been through a number of these things since I started investing in the 70’s. I have also read about bear markets. Also, what is a bear market depends on point of view. You could have the point of view that the US and Canadian market are one long bull market, as they continuously go up. You can see it them as a series of bear and bull markets. When you read about bear and bull markets you will see that depending on who is talking, different timings are given.
What really kills stocks markets is if a country is invaded or if a country goes bankrupt. If you think that a Western country cannot go bankrupt, you did not hear about the problems New Zealand had in the 1970’s. However, I do not think that any Western country, especially Canada, is going to have such problems anytime soon.
When people are referring to this bear market as a “Black Swan”, they are referring to a theory or a concept that a phenomenon could occur even if no one has ever observed it before. See Wikipedia entry at http://en.wikipedia.org/wiki/Black_swan_theory for more information on this concept or theory.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Friday, October 17, 2008
Canadian Natural Resources 2
This stock (TSX-CNQ) is on the Dividend Achievers at www.dividendachievers.com/ and the Dividend Aristocrats lists. It is a stock that I notice has been recommended lately as good value. It is hard to know what to buy in such volatile markets, so I am featuring ones who have recently been recommended in this tough market.
I have updated my spreadsheet for the June 2008 quarterly report. Looking at the ratings for this stock, they are from Strong Buy, Buy and Hold, with the mean rating being Buy. They have increased their dividend for this year in February 2008 by 17.6%. The P/E ratio has come down a bit. The Accrual Ratio has come down quite a bit, and this is good. The stock price is still about the Graham price, which is a good price to pay for this stock. It was the Graham Price being much higher than the stock price and the high Accrual Ratio I was concerned about with the December 2007 annual report. These problems has been resolved.
There is a loss in this 2nd quarter that has to do with revaluation of financial instruments they hold. These values are set by “mark to market” rules. They are not the only company affected by low market values in financial instruments and governments are rethinking the “mark to market” rules because with the freeze up of credit markets, financial instruments have much lower value that will be their ultimate value. It would take to long to explain this completely, but I would like to say, that I do not see this loss they have taken as a problem.
As far as the charts go, this stock has done was well as the TSX Index and the TSX Energy Index for the year to date period and for the last year. If you look at the charts for 3 years, 5 years and 10 years, this stock has done better than both the TSX Index and the TSX Energy Index.
Canadian Natural Resources Limited is a senior oil and natural gas exploration, development and production company. The Company's operations are focused in Western Canada, in the U.K. sector of the North Sea and in offshore West Africa. Its web site is www.cnrl.com. See my spreadsheet at www.spbrunner.com/stocks/cnq.htm. I have reloaded it with the June 2008 quarterly results.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
I have updated my spreadsheet for the June 2008 quarterly report. Looking at the ratings for this stock, they are from Strong Buy, Buy and Hold, with the mean rating being Buy. They have increased their dividend for this year in February 2008 by 17.6%. The P/E ratio has come down a bit. The Accrual Ratio has come down quite a bit, and this is good. The stock price is still about the Graham price, which is a good price to pay for this stock. It was the Graham Price being much higher than the stock price and the high Accrual Ratio I was concerned about with the December 2007 annual report. These problems has been resolved.
There is a loss in this 2nd quarter that has to do with revaluation of financial instruments they hold. These values are set by “mark to market” rules. They are not the only company affected by low market values in financial instruments and governments are rethinking the “mark to market” rules because with the freeze up of credit markets, financial instruments have much lower value that will be their ultimate value. It would take to long to explain this completely, but I would like to say, that I do not see this loss they have taken as a problem.
As far as the charts go, this stock has done was well as the TSX Index and the TSX Energy Index for the year to date period and for the last year. If you look at the charts for 3 years, 5 years and 10 years, this stock has done better than both the TSX Index and the TSX Energy Index.
Canadian Natural Resources Limited is a senior oil and natural gas exploration, development and production company. The Company's operations are focused in Western Canada, in the U.K. sector of the North Sea and in offshore West Africa. Its web site is www.cnrl.com. See my spreadsheet at www.spbrunner.com/stocks/cnq.htm. I have reloaded it with the June 2008 quarterly results.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Thursday, October 16, 2008
Canadian Natural Resources
This stock (TSX-CNQ) is on the Dividend Achievers at www.dividendachievers.com/ and the Dividend Aristocrats lists. It is a stock that I notice has been recommended lately as good value. It is hard to know what to buy in such volatile markets, so I am featuring ones who have recently been recommended in this tough market.
I do not own this stock, so I have done a spreadsheet on it. Tomorrow, I will do an update to include the latest quarterly report. Looking at this stock using the reports up to December 2007, the last annual report, I find that the Revenues and Earnings per Share (EPS) have increased nicely over the last 2 years at the rate of 25% annually and 35% annually respectively. This company started paying dividends in 2001 and over the past 5 years, they have increased them by 22% annually. Also, the Operational Cash Flow has increased over the last 5 years by 23% annually.
The Current Asset/Current Liability Ratio is low at .61, but the Asset/Liability Ratio is a healthier 1.58. The December 2007 Graham Price at $51.84, is quite a bit off the closing price of $72.58. The Accrual Ratio at December 2007 is high at 9%. However, the P/E Ratio is not bad at 15.4 and the Return on Equity (ROE) is quite high at 19.6%.
The main negatives I see are the low Graham Price and the high Accrual Ratio. The positives are that it has very nice growth in earnings, revenue, cash flow and dividends.
Canadian Natural Resources Limited is a senior oil and natural gas exploration, development and production company. The Company's operations are focused in Western Canada, in the U.K. sector of the North Sea and in offshore West Africa. Its web site is www.cnrl.com. See my spreadsheet at www.spbrunner.com/stocks/cnq.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
I do not own this stock, so I have done a spreadsheet on it. Tomorrow, I will do an update to include the latest quarterly report. Looking at this stock using the reports up to December 2007, the last annual report, I find that the Revenues and Earnings per Share (EPS) have increased nicely over the last 2 years at the rate of 25% annually and 35% annually respectively. This company started paying dividends in 2001 and over the past 5 years, they have increased them by 22% annually. Also, the Operational Cash Flow has increased over the last 5 years by 23% annually.
The Current Asset/Current Liability Ratio is low at .61, but the Asset/Liability Ratio is a healthier 1.58. The December 2007 Graham Price at $51.84, is quite a bit off the closing price of $72.58. The Accrual Ratio at December 2007 is high at 9%. However, the P/E Ratio is not bad at 15.4 and the Return on Equity (ROE) is quite high at 19.6%.
The main negatives I see are the low Graham Price and the high Accrual Ratio. The positives are that it has very nice growth in earnings, revenue, cash flow and dividends.
Canadian Natural Resources Limited is a senior oil and natural gas exploration, development and production company. The Company's operations are focused in Western Canada, in the U.K. sector of the North Sea and in offshore West Africa. Its web site is www.cnrl.com. See my spreadsheet at www.spbrunner.com/stocks/cnq.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Wednesday, October 15, 2008
Toromont Industries Ltd
This stock (TSX-TIH) is on the Dividend Achievers at www.dividendachievers.com/ and the Dividend Aristocrats lists and also on Mike Higgs’ list at www.dividendgrowth.org/Report.htm. It is a stock that I notice has been recommending lately. It is hard to know what to buy in such volatile markets, so I am featuring ones who have recently been recommended in this tough market.
I first bought this stock for my RRSP account in December 2007. According to Quicken, I have made an annual return of -8% so far on this stock. This is a bear market we are in at present so this is not surprising. This stock has raised their dividends for this year in January 2008. They have a good dividend record and this is continuing in this tough market. Their Graham Price has gone up to $21.59, and their price is now $23.94. So these prices are getting closer.
The P/E ratio on this stock has come down to 12.4, which is quite low. What people expect for the EPS for 2008 has not changed, which is a good sign. The Asset/Book Value ratio has been coming down and is now at 2.007, which is good. Unfortunately, the Return on Equity (ROE) has also come down for this quarterly report to 15.5% from 18.7%. The Accrual Ratio is negative, which is great, and the Asset/Liability Ratio is still high at almost 2. All in all, this stock is holding up quite well.
This company has two sections. The Equipment Group is for their Caterpillar dealerships. The Compression Group, designs, engineers, fabricates, installs and services natural gas compression units; and hydrocarbon and petrochemical process compression systems; and industrial and recreational refrigeration compression systems. They do business in Canada only. Its web site is www.toromont.com. See my spreadsheet at www.spbrunner.com/stocks/tih.htm. I have reloaded my spreadsheet to include the June 2008 quarterly report, which is the half way mark for this stock that reports in December each year.
I have updated it with the figures from the June 08 quarterly report.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
I first bought this stock for my RRSP account in December 2007. According to Quicken, I have made an annual return of -8% so far on this stock. This is a bear market we are in at present so this is not surprising. This stock has raised their dividends for this year in January 2008. They have a good dividend record and this is continuing in this tough market. Their Graham Price has gone up to $21.59, and their price is now $23.94. So these prices are getting closer.
The P/E ratio on this stock has come down to 12.4, which is quite low. What people expect for the EPS for 2008 has not changed, which is a good sign. The Asset/Book Value ratio has been coming down and is now at 2.007, which is good. Unfortunately, the Return on Equity (ROE) has also come down for this quarterly report to 15.5% from 18.7%. The Accrual Ratio is negative, which is great, and the Asset/Liability Ratio is still high at almost 2. All in all, this stock is holding up quite well.
This company has two sections. The Equipment Group is for their Caterpillar dealerships. The Compression Group, designs, engineers, fabricates, installs and services natural gas compression units; and hydrocarbon and petrochemical process compression systems; and industrial and recreational refrigeration compression systems. They do business in Canada only. Its web site is www.toromont.com. See my spreadsheet at www.spbrunner.com/stocks/tih.htm. I have reloaded my spreadsheet to include the June 2008 quarterly report, which is the half way mark for this stock that reports in December each year.
I have updated it with the figures from the June 08 quarterly report.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Tuesday, October 14, 2008
Enbridge
This stock (TSX-ENB) is on the Dividend Achievers and the Dividend Aristocrats lists and also on Mike Higgs’ list at http://www.dividendgrowth.org/Report.htm. It is a stock that I notice that many people have been recommending lately. It is hard to know what to buy in such volatile markets, but this stock seems to have done, relatively, well.
I bought this stock in 2005 and I have made an average annual return of only 6%. However, this is because the price of the stock is depressed with the current bear market. Looking around at what people are currently saying about this stock, there are lots of people that look on it currently as a strong buy. It seems to have already made in EPS what it is expected to earn for this year and it is only reporting on June 2008, half way through the year.
This stock has already increased the dividends for this year, in January 2008. The P/E ratio on this stock has already come down quite a bit. Compared to other stocks, the price has not fallen that much. It has a lot of debt, and comparably, a high debt ratio, but seems able to pay off its debts.
Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is www.enbridge.com.
See my spreadsheet at http://www.spbrunner.com/stocks/enb.htm.
I have updated it with the figures from the June 08 quarterly report.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at http://www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
I bought this stock in 2005 and I have made an average annual return of only 6%. However, this is because the price of the stock is depressed with the current bear market. Looking around at what people are currently saying about this stock, there are lots of people that look on it currently as a strong buy. It seems to have already made in EPS what it is expected to earn for this year and it is only reporting on June 2008, half way through the year.
This stock has already increased the dividends for this year, in January 2008. The P/E ratio on this stock has already come down quite a bit. Compared to other stocks, the price has not fallen that much. It has a lot of debt, and comparably, a high debt ratio, but seems able to pay off its debts.
Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is www.enbridge.com.
See my spreadsheet at http://www.spbrunner.com/stocks/enb.htm.
I have updated it with the figures from the June 08 quarterly report.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at http://www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Friday, October 10, 2008
The Good, The Bad and The Ugly 2
The market is still very ugly today. Perhaps there is not enough blood on the streets yet. I do not know what to say. The markets have gone insane. Maybe the mob that makes up the market will have the opportunity to rethink what they are doing over our long weekend. Remember that the real losers are those that sell into such a market. If the companies you invest in, do not go bankrupt or are not permanently damaged by the bear market, you will be ok.
Today I want to look closer at the stocks that had dividend increases in September. I was surprised, I must say, that the Pembina Pipelines stocks was given a Hold rating. I know that it is not perfect, but with the dividend increase and insider buying, I was wondering if a Hold rating was deserved. I was therefore already wondering what sort of rating the other stocks for which I got dividend increases in September were fairing via the analysts. These stocks were Manulife Financial, Russel Metals, and Saputo.
The first one is Manulife Financial (TSX-MFC). Wherever I look, I see Buy and Strong Buy ratings on this stock. This is a financial stock and it does have some exposure to the current problems. There is also lots of insider selling. This is mainly by Dominic D'alessandro who is retiring as CEO of this company. This could explain his selling. I have made an average of 9% annual return on this stock since I first bought it in May 2005. However, this is very much slated because of the current bear market.
The next one is Russel Metals (TSX-RUS). There are some Buy ratings on this stock and some Hold ratings. There is also lots of insider selling. You, of course, only know that there is insider selling. No reasons are given and I do not know of any. So far, I have not made any money on this stock, but I just brought it in April 2007. It is far too early to tell how good a stock this will be for me.
The last stock is Saputo (TSX-SUP). There are ratings on this stock from Strong Buys to Holds with the main average being Buy. Here again there is insider selling, but it seems to be all connected to stock options. Since I first bought this stock in November 2007, I have made an average annual return of 16.8%.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Today I want to look closer at the stocks that had dividend increases in September. I was surprised, I must say, that the Pembina Pipelines stocks was given a Hold rating. I know that it is not perfect, but with the dividend increase and insider buying, I was wondering if a Hold rating was deserved. I was therefore already wondering what sort of rating the other stocks for which I got dividend increases in September were fairing via the analysts. These stocks were Manulife Financial, Russel Metals, and Saputo.
The first one is Manulife Financial (TSX-MFC). Wherever I look, I see Buy and Strong Buy ratings on this stock. This is a financial stock and it does have some exposure to the current problems. There is also lots of insider selling. This is mainly by Dominic D'alessandro who is retiring as CEO of this company. This could explain his selling. I have made an average of 9% annual return on this stock since I first bought it in May 2005. However, this is very much slated because of the current bear market.
The next one is Russel Metals (TSX-RUS). There are some Buy ratings on this stock and some Hold ratings. There is also lots of insider selling. You, of course, only know that there is insider selling. No reasons are given and I do not know of any. So far, I have not made any money on this stock, but I just brought it in April 2007. It is far too early to tell how good a stock this will be for me.
The last stock is Saputo (TSX-SUP). There are ratings on this stock from Strong Buys to Holds with the main average being Buy. Here again there is insider selling, but it seems to be all connected to stock options. Since I first bought this stock in November 2007, I have made an average annual return of 16.8%.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Thursday, October 9, 2008
The Good, The Bad and The Ugly
The ugly is the current financial problems. The bad is that we will get hit by them. We are going to have a recession. The good is we will do better than most and much better than the US this time. The other good is that 4 of my stocks raised their dividend payments in September. These stocks were Manulife Financial, Pembina Pipelines, Russel Metals, and Saputo.
You really have to be well positioned going into a volatile market, such as we have. By and large, I have solid dividend paying stock and I stick with them. How am I doing? If you look at total market value, I am way down. If you look at dividend income, I am up. Two of my bank stocks, Royal Bank and Bank of Montreal, have not yet increased their dividends this year. I have not seen anything to suggest they intend to do this. They have had annual increases for quite some time. The other two banks I follow, the TD Bank (which I have) and the Bank of Nova Scotia (which I do not have) have raised their dividend this year.
If your portfolio is well set-up, as mine is; you will survive this market quite nicely. I do not expect this to be easy or worry free, but I will, in the end do quite well. No one knows how long it will take for the market to recover. If you have sold stock into this market, or cannot hold off selling, then there is nothing anyone can do to help you. It is only the ones who are not forced to sell or who do not sell, in this sort of market that survives well.
I mostly live off my investments, so I never have invested money I need currently. I always have money, together with expected dividends, to last 3 to 5 years. I have also try for the 4%, 8% solution. I try to make an 8% average annual return on my investments and I try only to spend an average of 4% of my portfolio each year. The implication of this is that I have an extra 4% to spend every year.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
You really have to be well positioned going into a volatile market, such as we have. By and large, I have solid dividend paying stock and I stick with them. How am I doing? If you look at total market value, I am way down. If you look at dividend income, I am up. Two of my bank stocks, Royal Bank and Bank of Montreal, have not yet increased their dividends this year. I have not seen anything to suggest they intend to do this. They have had annual increases for quite some time. The other two banks I follow, the TD Bank (which I have) and the Bank of Nova Scotia (which I do not have) have raised their dividend this year.
If your portfolio is well set-up, as mine is; you will survive this market quite nicely. I do not expect this to be easy or worry free, but I will, in the end do quite well. No one knows how long it will take for the market to recover. If you have sold stock into this market, or cannot hold off selling, then there is nothing anyone can do to help you. It is only the ones who are not forced to sell or who do not sell, in this sort of market that survives well.
I mostly live off my investments, so I never have invested money I need currently. I always have money, together with expected dividends, to last 3 to 5 years. I have also try for the 4%, 8% solution. I try to make an 8% average annual return on my investments and I try only to spend an average of 4% of my portfolio each year. The implication of this is that I have an extra 4% to spend every year.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Wednesday, October 8, 2008
Pembina Pipelines 2
As I said yesterday, I first brought this stock (TSX-PIF.UN) in December 2001 and I have made an annual rate of return of 15% on this stock. Even though this stock has fallen a lot with the current bear market, any analyst I can find has a hold rating on this stock. I think that is because people see a big risk in the construction of the proposed Nipisi and Mitsue Pipelines. And, also Pembina ships oil from the Canadian Oil Sands. Lets face it, a big chuck of the TSX is resource stocks. Canada is heavy in resources. I invest in such thinks pipelines as a way of investing in our oil, without buying taking on a big risk. This stock is considered a low risk stock compared to oil stocks, which are considered high risk stocks.
Generally, this stock does better than the TSX Utility Index and worse than the TSX index. However, do not forget that the charts only track stock prices. The TSX index does not include dividends. For this stock, for the 5 years ending December 2007, the stock price return was 10%, but the stock price plus dividend return was 18.5%.
Not much has changed since I wrote about this stock yesterday. I have updated my spreadsheet re the 2nd quarterly report of June 2008. The positive things are that the stock price of $12.86 is now below the Graham Price of $13.67, Pembina just upped their dividend payout by 8.3% and there is insider buying.
This is the biggest Pipeline Income Fund in Canada. It is a utility. It is engaged in the transportation of light conventional and synthetic crude oil, condensate and natural gas liquids in Western Canada. Its web site is www.pembina.com. See my spreadsheet on this company at www.spbrunner.com/stocks/pif.htm. I have reloaded my spreadsheet with the second quarter report of June 2008.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Generally, this stock does better than the TSX Utility Index and worse than the TSX index. However, do not forget that the charts only track stock prices. The TSX index does not include dividends. For this stock, for the 5 years ending December 2007, the stock price return was 10%, but the stock price plus dividend return was 18.5%.
Not much has changed since I wrote about this stock yesterday. I have updated my spreadsheet re the 2nd quarterly report of June 2008. The positive things are that the stock price of $12.86 is now below the Graham Price of $13.67, Pembina just upped their dividend payout by 8.3% and there is insider buying.
This is the biggest Pipeline Income Fund in Canada. It is a utility. It is engaged in the transportation of light conventional and synthetic crude oil, condensate and natural gas liquids in Western Canada. Its web site is www.pembina.com. See my spreadsheet on this company at www.spbrunner.com/stocks/pif.htm. I have reloaded my spreadsheet with the second quarter report of June 2008.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Tuesday, October 7, 2008
Pembina Pipelines
I first brought this stock (TSX-PIF.UN) in December 2001. I have made an annual rate of return of 15% on this stock. The yield is usually around 7% on this stock. I looked at it today and it is 10.6%. Of course, the market is way down on everything. If I look at my year to day earnings on this stock, I have lost 3%. This loss is because of the price of the stock. It is still producing strong dividends. In fact, for the September distribution they have increased their dividend.
The dividends (or distributions) for this stock has been increased by almost 14% this year. This is a type of stock where the dividends are good, but the dividend increases are sporadic. However, the dividend increases tend to be greater than inflation.
The best place I know to get good information on Income Trust stocks to buy is the Money Reporter produced by MPL Communications. They have a site called http://www.adviceforinvestors.com/ and if you click on the “About and Contact” button (top right of web page), you will be offered this newsletter for an introductory price of $38 for the first year. I do not tend to get such publications regularly, but every once in a while I sign up again for 6 months or a year to find new stocks to invest in.
For the 5 years ending at December 2007, this stock’s revenue has gone up 17.6% per year, Earnings per Share (EPS) has gone up 14% per year, dividends have gone up 5.5%, closing price has gone up 10% per year, with the price plus dividend giving a total return of 18.5% per year. During this period the Operational Cash Flow has only gone up 6.3% per year.
The negatives are that the Graham Price is only $12.79 at the December 2007 year end against the Closing Price of $17.54. The Accrual Ratio is very high at 12%.
The Current Asset /Current Liability ratio is low at .89, but the Asset/Liability Ratio is much better at 1.86. The Return on Equity (ROE) has been improving and this is good. The Book Value per share is not improving; however, this is to be expected because of high payouts under this income trust.
This has been a good stock for me, as it has delivered good dividends and some growth.
This is the biggest Pipeline Income Fund in Canada. It is a utility. It is engaged in the transportation of light conventional and synthetic crude oil, condensate and natural gas liquids in Western Canada. Its web site is www.pembina.com. See my spreadsheet on this company at www.spbrunner.com/stocks/pif.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www./spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
The dividends (or distributions) for this stock has been increased by almost 14% this year. This is a type of stock where the dividends are good, but the dividend increases are sporadic. However, the dividend increases tend to be greater than inflation.
The best place I know to get good information on Income Trust stocks to buy is the Money Reporter produced by MPL Communications. They have a site called http://www.adviceforinvestors.com/ and if you click on the “About and Contact” button (top right of web page), you will be offered this newsletter for an introductory price of $38 for the first year. I do not tend to get such publications regularly, but every once in a while I sign up again for 6 months or a year to find new stocks to invest in.
For the 5 years ending at December 2007, this stock’s revenue has gone up 17.6% per year, Earnings per Share (EPS) has gone up 14% per year, dividends have gone up 5.5%, closing price has gone up 10% per year, with the price plus dividend giving a total return of 18.5% per year. During this period the Operational Cash Flow has only gone up 6.3% per year.
The negatives are that the Graham Price is only $12.79 at the December 2007 year end against the Closing Price of $17.54. The Accrual Ratio is very high at 12%.
The Current Asset /Current Liability ratio is low at .89, but the Asset/Liability Ratio is much better at 1.86. The Return on Equity (ROE) has been improving and this is good. The Book Value per share is not improving; however, this is to be expected because of high payouts under this income trust.
This has been a good stock for me, as it has delivered good dividends and some growth.
This is the biggest Pipeline Income Fund in Canada. It is a utility. It is engaged in the transportation of light conventional and synthetic crude oil, condensate and natural gas liquids in Western Canada. Its web site is www.pembina.com. See my spreadsheet on this company at www.spbrunner.com/stocks/pif.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www./spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Monday, October 6, 2008
Computer Modelling Group 3
I said the other day, before being distracted by the problems with my Rogers site; I would take another look at this small cap stock to see how it is faring in this difficult market. The short answer is that it is doing quite well.
Since I last reported on this stock in July 2008, the stock has split on a 2 or 1 basis and the company has increased their annual dividends. This is the second increase for this year and also they have issued a special dividend this year. Their dividends are now up 125% from last year. This would mean that the dividend would be 122% of the EPS that is expected this year. It would seem that the company expects the EPS to be higher than what is expected.
Even though the stock is up for the year, it has, however, it has been coming down since August 2008. It certainly has done much better than the TSX and better than the TSX InfoTech Index. The Accrual Ratio is still good at “-4.5%”, The Graham price is still a distance from the stock price and that makes this a risky stock. However, they are increasing their earnings and revenue.
Will this stock be a future dividend paying growth stock added to our lists of such stocks? Only time will tell.
This company is a computer software technology and consulting firm engaged in the development and sale software. Its web site is www.cmgl.ca. See my spreadsheet on this company at www.spbrunner.com/stocks/cmg.htm. I have reloaded my spreadsheet with the first quarter report of June 2008.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on web site.
Since I last reported on this stock in July 2008, the stock has split on a 2 or 1 basis and the company has increased their annual dividends. This is the second increase for this year and also they have issued a special dividend this year. Their dividends are now up 125% from last year. This would mean that the dividend would be 122% of the EPS that is expected this year. It would seem that the company expects the EPS to be higher than what is expected.
Even though the stock is up for the year, it has, however, it has been coming down since August 2008. It certainly has done much better than the TSX and better than the TSX InfoTech Index. The Accrual Ratio is still good at “-4.5%”, The Graham price is still a distance from the stock price and that makes this a risky stock. However, they are increasing their earnings and revenue.
Will this stock be a future dividend paying growth stock added to our lists of such stocks? Only time will tell.
This company is a computer software technology and consulting firm engaged in the development and sale software. Its web site is www.cmgl.ca. See my spreadsheet on this company at www.spbrunner.com/stocks/cmg.htm. I have reloaded my spreadsheet with the first quarter report of June 2008.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on web site.
Thursday, October 2, 2008
I Do Not Know What Rogers Is Doing 2
I looked recently and you can still access the spreadsheets on my site via this blog. I just cannot update them.
My Internet Service Provider (ISP) is Rogers. They have this Rogers/Yahoo thing that it is Yahoo that provides Roger’s customers with a free internet site. All ISP provide this feature, whether or not people are aware of it. Anyway, it is to be ad free. It is sort of. I do not get the ads that Yahoo puts on their “free” sites. I do get those annoying little Yahoo boxes instead. I have not been able to get into my Rogers/Yahoo site for the past 3 days. At first, it was only via their Rogers/Yahoo main sign in site. Now I cannot access it via File Transfer Protocol (FTP).
Anytime I try to access the Rogers/Yahoo site I get a site that asks me to purchase an ad free web site from yahoo for $8.95 a month. This is not what it appears to be. All these “monthly” deals want you to pay 12 - 24 months of fees upfront when you sign up. Yahoo sites are not great deals when it comes to web sites. They are expensive and have limited features.
What I did was sign up with a US Web Sit Provider for $4.95 a month ($US) for 24 months. That is I paid $118.80 $US. No matter what our currency is at, this is a better deal. It also has unlimited space and unlimited bandwidth and is feature heavy.
One of the downsides to some US providers is their moral codes, which, if you violate they can terminate your contract and take down your web site and you have no recourse. (Always read the conditions you accept when signing up for anything on the web, or anywhere else for that matter.) The Blue Host company I signed up with will not tolerate pornography or swearing. Since I plan to talk about investments, and swearing is not really my thing, this does not bother me.
Now that I have a brand new site, I have to set it up and get it going. I had decided some months ago to revamp my site, so I will finish that and get it going as soon as I can.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
My Internet Service Provider (ISP) is Rogers. They have this Rogers/Yahoo thing that it is Yahoo that provides Roger’s customers with a free internet site. All ISP provide this feature, whether or not people are aware of it. Anyway, it is to be ad free. It is sort of. I do not get the ads that Yahoo puts on their “free” sites. I do get those annoying little Yahoo boxes instead. I have not been able to get into my Rogers/Yahoo site for the past 3 days. At first, it was only via their Rogers/Yahoo main sign in site. Now I cannot access it via File Transfer Protocol (FTP).
Anytime I try to access the Rogers/Yahoo site I get a site that asks me to purchase an ad free web site from yahoo for $8.95 a month. This is not what it appears to be. All these “monthly” deals want you to pay 12 - 24 months of fees upfront when you sign up. Yahoo sites are not great deals when it comes to web sites. They are expensive and have limited features.
What I did was sign up with a US Web Sit Provider for $4.95 a month ($US) for 24 months. That is I paid $118.80 $US. No matter what our currency is at, this is a better deal. It also has unlimited space and unlimited bandwidth and is feature heavy.
One of the downsides to some US providers is their moral codes, which, if you violate they can terminate your contract and take down your web site and you have no recourse. (Always read the conditions you accept when signing up for anything on the web, or anywhere else for that matter.) The Blue Host company I signed up with will not tolerate pornography or swearing. Since I plan to talk about investments, and swearing is not really my thing, this does not bother me.
Now that I have a brand new site, I have to set it up and get it going. I had decided some months ago to revamp my site, so I will finish that and get it going as soon as I can.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
Wednesday, October 1, 2008
I do not know what Rogers is Doing
I have a site from Rogers, as they are my ISP. However, I can no longer access my site to update it. The current spreadsheets seem to be available at the moment, but I can no longer update any spreadsheet.
Organic Resource Management 2
As I said yesterday, I bought this stock in 1997 (TSX-ORI) and it did not do too badly at first, but since that time it has lost money quite steadily. The problem with small caps is the lack of information on them. There is often very few to no analyst following a small cap stock. The only place I have found to provide small cap information on a Canadian Stock is http://agoracom.com/.
For this stock there was some insider selling in December 2007, as tax liability money was needed. Lately, there has been some insider buying. During the past year, this stock has done as well as the TSX Small Cap Index. However, if you look at the 3 year, 5 year and 10 year periods, this stock has done much worse than the TSX Small Cap Index. Over the past year, 3 year, 5 year and 10 year periods, the TSX Small Cap Index has done much worse than the TSX.
Since there has been a restructuring of this stock in December 2007, it is too soon to tell what might happen. The only reason I still have this stock is that it is worth so little, that it not worthwhile selling. I am also interested to see what happens to this stock eventually. I will pay attention to this stock, at least yearly if I have some.
I have lately bought a dividend paying small cap called Computer Modelling Group Ltd, which I have already talked about, and will have another look at it tomorrow. I want to check to see how it is holding up during this difficult market.
The Company’s core business is the regularly scheduled collection of non-hazardous liquid organic residuals. It collects, processes and recycles these wastes. Its site is at www.ormi.com/ormi/. See my spreadsheet at www.spbrunner.com/stocks/ori.htm. I have reloaded my spreadsheet with new current Closing Price. There is nothing else to put there as I have just updated it for the Annual Report of June 2008.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
For this stock there was some insider selling in December 2007, as tax liability money was needed. Lately, there has been some insider buying. During the past year, this stock has done as well as the TSX Small Cap Index. However, if you look at the 3 year, 5 year and 10 year periods, this stock has done much worse than the TSX Small Cap Index. Over the past year, 3 year, 5 year and 10 year periods, the TSX Small Cap Index has done much worse than the TSX.
Since there has been a restructuring of this stock in December 2007, it is too soon to tell what might happen. The only reason I still have this stock is that it is worth so little, that it not worthwhile selling. I am also interested to see what happens to this stock eventually. I will pay attention to this stock, at least yearly if I have some.
I have lately bought a dividend paying small cap called Computer Modelling Group Ltd, which I have already talked about, and will have another look at it tomorrow. I want to check to see how it is holding up during this difficult market.
The Company’s core business is the regularly scheduled collection of non-hazardous liquid organic residuals. It collects, processes and recycles these wastes. Its site is at www.ormi.com/ormi/. See my spreadsheet at www.spbrunner.com/stocks/ori.htm. I have reloaded my spreadsheet with new current Closing Price. There is nothing else to put there as I have just updated it for the Annual Report of June 2008.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
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